Recent pullbacks aside, Latin America's exchange traded funds
(ETFs) are still worthy of a little attention. Several of them, in
fact, remain above their 200-day moving average and have held up
relatively well through the market's tumult.
Only three Latin America-focused ETFs have a accrued a five-year
track record, and their average returns are an impressive
writes Nick Sudbury for IFAonline
Will Your Money Be Safer In Latin America ETFs?
iShares MSCI Brazil (NYSEArca:
was up 389% over the five-year period. EWZ has 78 holdings and an
expense ratio of 0.74%. The largest holding is the oil producer
Petrobras, which is 20% of the portfolio. The fund has 51% exposure
to energy. Brazil's economy is forecast to expand 6% this year,
aided by its large reserves of natural resources and a growing
iShares S&P Latin America Index (NYSEArca:
was up 317% in five years. The fund has an expense ratio of 0.5%
and very liquid. Country allocations include Brazil, 63%; Mexico,
22.4%; and Chile, 11%.
Global X/InterBolsa FTSE Columbia 20 Index (NYSEArca:
has been one of the top Latin American funds in the last year, with
a return of 87%. Colombia makes up only 1% to 3% of the Latin
American funds, despite being one of the largest economies in South
America. The country is classified as a frontier market, but it has
a fairly diversified economy and the market index has been less
volatile than the S&P 500.
For more information on Latin America, visit our
Latin America category
SPDR S&P Emerging Latin America (NYSEArca:
iShares MSCI Chile Index (NYSEArca:
iShares MSCI Mexico ETF (NYSEArca:
iShares MSCI All Peru Capped Index (NYSEArca:
Max Chen contributed to this article.